�To
seek power by servility to the people is a disgrace,
but to maintain it by terror, violence, and oppression is not
a disgrace only, but an injustice.� [1]

Abstract

The
word mortgage is derived from morgage, mort gage: dead
pledge; mort, dead, and gage a pledge. It represents a
pledge of property as security for payment of a debt.

The
most common use is in the buying, selling, and borrowing for a home
where the mortgage refers to the debt secured by the mortgage. It can
also refer to the legal document used in securing property.

Let's
take a close up look as how this process works.

�The
creditor has legalrights to the debtsecured
by the mortgage and often make a loan to the debtor of the
purchase money for the property.�

�The
debtor or debtors must meet the requirements of the
mortgage conditions (and often the loan conditions) imposed
by the creditor in order to avoid the creditor enacting provisions
of the mortgage to recover the debt.� [2]

There
are two main types of mortgages: mortgage by demise and mortgage by
legal charge.

�In
a mortgage by demise, the creditor becomes the owner of the
mortgaged property until the loan is repaid in full (known as
"redemption"). This kind of mortgage takes the form of a
conveyance of the property to the creditor, with a condition that the
property will be returned on redemption.�

�In
a mortgage by legal charge, the debtor remains the legal owner of the
property, but the creditor gains sufficient rights over it to
enable them to enforce their security, such as a right to take
possession of the property or sell it.

To
protect the lender, a mortgage by legal charge is usually recorded in a
public register. Since mortgage debt is often the largest debt owed by
the debtor, banks and other mortgage lenders run title searches of the
real property to make certain that there are no mortgages already
registered on the debtor's property which might have higher priority.�
[3]

The
Tax Man

�Tax
liens, in some cases, will come ahead of mortgages. For this reason, if
a borrower has delinquent property taxes, the bank will often pay them
to prevent the lienholder from foreclosing and wiping out the
mortgage.� [4

Notice
how in all of these definitions that instead of becoming simpler with
each explanation it is instead becoming more complicated with increasing
legal terms and ramifications.

�A
tax lien is a lien imposed on property by law to secure
payment of taxes. Tax liens may be imposed for delinquent taxes owed
on real property or personal property, or as a result of failure to pay
income taxes or other taxes.� [5]

Internal
Revenue Code section 6321 provides:

�Sec.
6321. LIEN FOR TAXES.

If
any person liable to pay any tax neglects or refuses to pay the
same after demand, the amount (including any interest, additional
amount, addition to tax, or assessable penalty, together with any costs
that may accrue in addition thereto) shall be a lien in favor
of the United States upon all property and rights
to property, whether real or personal, belong to such person.� [6]

Are
you getting a queasy feeling down in the pit of your stomach yet? If not
just wait, there is much more user friendly legalese to come. First we
will delve into foreclosure.

Foreclosure

�Foreclosure
is the legal proceeding in which a bank or other secured creditor sells
or repossesses a parcel of real property (immovable property) due to the
owner's failure to comply with an agreement between the lender and
borrower called a "mortgage" or "deed of trust".
Commonly, the violation of the mortgage is a default in payment of a
promissory note, secured by a lien on the property. When the process is
complete, it is typically said that "the lender has foreclosed its
mortgage or lien." [7]

The
further we progress into the issue the more complicated it becomes. This
is why a lawyer is needed in the conveyance of property.

�Conveyancing is the act of transferring the ownership of a property from one person
to another. The buyer needs to ensure that he or she gets good 'title'
to the land; i.e., that the person selling the house actually has
the right to sell it.� [8]

A Deed

A deed is a legal instrument used for transferring title to
real estate from one person to another although it can be used in other
proceedings. Now we are getting closer to the bone as it is said.

We
are all familiar with the terms deed and title, as such legal
instruments are used in the conveyance of all real estate. Anyone that owns
property such as their home and land have heard these terms before.
Let's take a little closer look, as these legal instruments are very
important and carry specific encumbrances and
ramifications.

�Fee
simple, also known as fee simple absolute, is an estate in land in common
law. It is the most common way real estate is owned in common law
countries, and is ordinarily the most complete ownership interest that
can be had in real property short of allodial title, which is
often reserved for governments.

Fee
simple ownership represents absolute ownership of real property but it
is limited by the four basic government powers of
taxation, eminent domain, police power, and escheat.

How ownership is limited by these government powers often involves the shift from allodial
title to fee simple such as when uniting with other property owners
acceding to property restrictions or municipal regulation.�

Although
a bit complicated, it sounds like once you wade through all the
legelease and you pay off your mortgage, that you own your property and
are in possession of the title for it.

Property
Titles

But
how many people ever pay their mortgage off in full to begin with? If
the mortgage doesn't get paid off, then we do not have the title to
the property in our possession. The title remains with the lender. So
the lendor actually owns the land until the mortgage is paid off.

�Ownership is the state or fact of exclusive possession or control of property,
which may be an object, land/real estate, intellectual property or some
other kind of property."

�At
common law, an estate is the totality of the legal rights,
interests, entitlements and obligations attaching to property. In
the context of wills and probate, it refers to the totality of the
property which the deceased owned or in which some interest was held. It
may also refer to an estate in land.� [9]

Well
that doesn't sound too bad, if once again the mortgage has been paid
off in full. I wonder if there is a difference between possession and
exclusive possession in the above definition of ownership.

�At common law, a mortgage was a conveyance of land that on its face
was absolute and conveyed a fee simple estate, but which was in fact
conditional, and would be of no effect if certain conditions were
not met --- usually, but not necessarily, the repayment of a debt to
the original landowner.� [10]

Hmm, now it’s gone from complicated to very conditional, as in the
difference between exclusive ownership and ownership.

Conditions

Now
we find that a conveyance of land that on its face was absolute (kind of
like exclusive) was in fact conditional and could be of NO
EFFECT.

Bankruptcy

It
almost sounds like none of us really owns anything outright, as in allodial
title, which is reserved for governments or the Royal Family,
which are the same. Complicating matters even more is the law of
bankruptcy:

�Under
the law of bankruptcy in the United States, the "estate" is
defined by the Bankruptcy Code as all assets or property of any
kind belonging to the debtor which is
available for distribution to creditors. The bankruptcy
estate is defined at 11 U.S.C. � 541 .
In some cases, the person with legal responsibility for the estate is
the trustee.� [11]

Rights

The
creditors have more rights to the property than the individual who
�bought� the property and is paying off the mortgage. In fact, the
debtor does not retain the title to the property until the mortgage is
paid in full. In the mean time, the creditor
owns and has possession of the title.

The
poor borrower is at the back of the line regarding ownership of
any property; as before him, in the eyes of the court, is the lender;
and ahead of the lender is the State. The buyer is last in line. Yes �
I know, it is hard to believe. So here is a bit of evidence:

"The
ultimate ownership of all property is in the state;
individual so-called ownership' is only by virtue of government,
i.e., law, amounting to a mere user; and use must be in
accordance with law and subordinate to the necessities of the
State." [12]

One
could reasonably argue that it makes perfect sense that the creditor or
lender owns the title and the property; until such time when the
borrower (buyer) pays off his loan from the creditor, especially if the lender
can show proof that hepaid in full for the property and
holds a legal title. Now the fun part begins, as we are going to look a
bit closer at this thing called lending.

Lending

When
one decides they want to buy a house or property, they go to their
friendly banker to take out a loan to purchase the real estate. Just for
the sake of an example, let us say we are going to buy a $1,000,000.00
house. We have to come up with a deposit and the required proof that we
can reasonably be expected to pay off the loan, which runs for a period
of 30 years.

The
�proof� usually includes having a good job with an income large
enough to not only service the debt for the house, but to also supply
adequate resources to pay all the other necessary bills to survive in
today's modern world. Any other existing debt is of consequence, as
well as our history regarding paying off debt.

Credit
by Mortgage

If
we pass inspection, our friendly banker says that if we put down a 10%
deposit of $100,000.00 dollars, then he will loan us the balance of the
money needed to purchase the house. The banker offers to extend us
credit via a mortgage.

This
on the surface sounds straightforward and innocuous. Millions of people
have done it, and millions more do it each day. Nevertheless, let us dig
beneath the surface a bit to see what we can discover.

The
price of the house is $1 million dollars. We are going to put down a 10%
deposit of $100,000.00. The difference of $900,000.00 the banker is
going to loan to us. Of course, he will charge us interest on the loan,
as that is what bankers do � they collect their hard earned vig, as do
all good collectivists.

So,
we sign the mortgage and take out the loan. We also get a schedule of
monthly payments for the next 30 YEARS. These are our mortgage
payments, which include not only the $900,000.00 but the monthly charge
of interest on it as well.

Debt
Servitude

Note:
when we sign on the dotted line of a 30 year mortgage, we obligate
ourselves to work for the next 30 years, to earn enough income to
service our newly acquired debt: the mortgage loan.

To
get possession of the title we must pay off the loan; in consequence,
we have accepteda large obligation that lasts for most of our
adult life. Faust must be smiling.

If
a borrower takes the full 30 years to pay off the mortgage loan, by the
time all is said and done, they will have paid the banker almost 3
times the original purchase price of $1,000,000.00 � a total of
almost $3,000,000.00. Oh yes, we get to pay property taxes as well.

Needless
to say, the banker makes out quite well. Come to think of it, he must be
very rich to be able to lend so many people so much money. I wonder
where the banker got all the money to loan out to everyone.

Where's
The Money

The
truth of the matter is that the banker does not lend any of �his�
money. In fact, the banker does not lend any money, as the money
does not really exist. All the banker does is extend credit. He
simply marks in his ledger (computer screen) that he is loaning you
$900,000.00 dollars.

�Mr.
Patman warns us to remember that: "The cash, in truth, does not
exist and never has existed. What we call `cash reserves' are simply
bookkeeping credits entered upon the ledgers of the Federal Reserve
Banks. These credits are created by the Federal Reserve Banks and then
passed along through the banking system." [13]

Does
the banker or the bank have this money on deposit in reserves at the
bank? No, they do not. The money did not exist until the banker
created it by the very act of lending it to you, and marking it in his
ledger.

The
extension of credit, whereby money is created � is nothing more than a
bunch of double-entry bookkeeping figures. Tough work if you can get it.

�Modern
Money Mechanics publication from Chicago, once again: "Deposits are
merely book entries...demand deposits are liabilities of commercial
banks. The banks stand ready to convert such deposits into currency or
transfer their ownership at the request of depositors." [14]

That
is all our monetary system is under the thumb of paper fiat debt-money:
empty, hollow promises to pay � promises that can never be kept. How
could they be � there is no money. It is all just a scam, a fraud �
an illusion of delusion.

Debt
Equals Money

How
can this possibly be true, the reader must be asking. Our government
would not allow this � would they? Yes, they would, and yes, they
have.

�And,
from further testimony from the Federal Reserve itself: In a publication
from the Federal Reserve Bank of Chicago, entitled "Two Faces of
Debt," -- "Currency is so widely accepted as a medium of
exchange that most people do not think of it as debt." [15]

On
June 5, 1933, Congress passed the House Joint Resolution 192 to suspend
the gold standard and the redeemability in gold of paper money. Since
that time, it has been impossible to lawfully pay off a debt. The
resolution stated:

�
. . . Whereas the holding or dealing in gold affect the PUBLIC INTEREST,
[STATE-Corporate Interest] and are therefore subject to proper
regulation and restriction: and whereas the existing emergency has
disclosed that provisions of obligations which purport to give the obligee
a RIGHT TO REQUIRE PAYMENT in gold or a particular kind of coin or
currency . . . ARE INCONSISTENT WITH THE DECLARED POLICY OF CONGRESS IN
THE PAYMENT OF DEBTS . . . PAYMENT in gold or a particular kind of
coin or currency, or in an amount in money of the united States measured
thereby, IS DECLARED TO BE AGAINST PUBLIC POLICY: . . . AND . . .
EVERY OBLIGATION, HERETOFORE OR HEREAFTER INCURRED, SHALL BE DISCHARGED
upon payment, dollar for dollar, in any coin or currency which, at the
time of payment, is legal tender for public and private debts . .
." [16]

This
statute accomplishes four unbelievably corrupt acts. The first two are:
it dismisses what was left of the hard currency monetary system of the
Constitution (gold & silver coin), for being inconsistent
with the declared policy of Congress; and it declares the constitutional
mandate to accept gold as legal tender to be against public policy.

Constitution
& Law

These
acts are not in keeping with the Constitution, and can only be changed
by a constitutional amendment � which has not occurred. We are hereby
reminded, why any law, if not in pursuance of the Constitution, is null
and void, as if it never occurred; and consequently, is not part of The
Supreme Law of the Land.

It
also allows for debts to be dischargedWITHOUT the use of
the hard money currency of gold and silver coin of the Constitution,
thereby allowing for the use of paper fiat debt-money in the discharge
of debt � or what the Federal Reserve refers to as: monetizingthe debt.

Credit
Equals Money Equals Debt

Lastly,
by instituting a paper fiat debt-money system, whereby credit and debt
and money are one and the same � it is issuing debt obligations that
are backed by the credit extended by the acceptance of all mortgages
on our homes, and other private property.

"The
Federal Reserve Notes, therefore, in form have some of the qualities of
government paper money, but, in substance, are almost purely asset
currency possessing a government guaranty against which contingency the
government has made no provision whatever." [17]

Essentially,
it comes down to the fact that we borrow money that does not really
exist as it did when gold and silver coin was money. Back then the hard
currency existed. Today, most of what is called the money supply, as
well as the supply of credit, is nothing more than numbers on the ledger
of the lender�s books.

Perpetual
Interest

In
addition, the lender gets to create more money or credit - by simply
offering it to us. When we accept the offer, money and debt are
created by the act of accepting credit.

Money,
debt, and credit are one in the same in a paper fiat land, as opposed to
a hard currency monetary system of Honest Weights and Measures, as
stated in the Constitution and the Coinage Act of 1792. Then silver and
gold coin circulated as the currency.

�Mariner
Eccles, former chairman of the Federal Reserve Board, held the following
exchange with Congressman Patman before the House Banking and Currency
Committee on September 30, 1941:

Congressman
Patman: "Mr. Eccles, how did you get the money to buy those two
billions of government securities?"

Bond-age

A
paper fiat monetary system of debt-money also insures that there is a perpetual
national debt, which insures a perpetual service of interest
payments to the elite collectivist.

"They
should not have foisted that kind of currency, namely an asset currency,
on the United States Government. They should not have made the
government liable on the private debts of individuals and corporations
and, least of all on the private debts of foreigners." [19]

It is
nothing more than monetary prostitution of our freedom and liberty, as
well as our children�s and their children�s.

Payment
or Discharge

This
is why Joint Resolution 192 switches from payment of debt to the
discharge of debt. With real money of gold and silver coin, one can
pay debts � hell that is the purpose for having money. However, when
you do away with real money, you no longer have any real way to pay off
debts � so now they are simply discharged by, or transferred to,
others.

Perhaps
this is why Congressman Long stated the following:

"That
is the equity of what we are about to do. Yes, you are going to close us
down. Yes; you have already closed us down, and have been doing it long
before this year. Our President says that for 3 years we have been on
the way to bankruptcy. We have been on the way to bankruptcy longer than
3 years. We have been on the way to bankruptcy ever since we began to
allow the financial mastery of this country gradually to get into the
hands of a little clique that has held it right up until they would send
us to the grave." [20]

It
appears that Congressman Patman understood it all too well when he said:

"I
want to show you where the people are being imposed upon by reason of
the delegation of this tremendous power. I invite your attention to the
fact that section 16 of the Federal Reserve Act provides that whenever
the Government of the United States issues and delivers money, Federal
Reserve notes, which are based on the credit of the Nation--they
represent a mortgage upon your home and my home, and upon all the
property of all the people of the Nation--to the Federal Reserve
agent, an interest charge shall be collected for the Government." [21]

There
is much more to say on this, however, this is a good start. More will
follow in due course, especially by what ways and means land was
originally obtained, and just what is this thing called Common Law.

If
the above is true, which I believe to be the case, we all must take a
stand on the issue of Honest Money by using our power to vote. We need
to vote the right people into position to make the overhaul of a
pernicious system happen.

It
cannot be done all at one time � but a journey of 1000 miles begins
with one step, and is further advanced, one step at a time. If man can
build the Great Pyramid, thousands of years ago � we can at least
institute the mandates of the Constitution, including Honest Money.

There
is a saying that if all good men doing nothing, then evil can endure. If
all good men cast their Light as beacons of truth � evil dissipates,
as all it is - is the absence of Light.

�Simplicity
without a name
Is free from all external aim.
With no desire, at rest and still,
All things go right as of their will.� [22]

About
the author: Douglas V.
Gnazzo is CEO of New England Renovation LLC, a historical restoration contractor
that specializes in restoring older buildings that are vintage historic
landmarks. He writes for numerous websites and his work appears both
here and abroad. Just recently he was honored by being chosen as a Foundation
Scholar for the Foundation for the Advancement of Monetary Education
(FAME).

Disclaimer:
The contents of this article represent the opinions of Douglas V.
Gnazzo. Nothing contained herein is intended as investment advice or
recommendations for specific investment decisions, and you should not
rely on it as such. Douglas V. Gnazzo is not a registered investment
advisor. Information and analysis above are derived from sources and
using methods believed to be reliable, but Douglas. V. Gnazzo cannot
accept responsibility for any trading losses you may incur as a result
of your reliance on this analysis and will not be held liable for the
consequence of reliance upon any opinion or statement contained herein
or any omission. Individuals should consult with their broker and
personal financial advisors before engaging in any trading activities.
Do your own due diligence regarding personal investment decisions. This
article may contain information that is confidential and/or protected by
law. The purpose of this article is intended to be used as an
educational discussion of the issues involved. Douglas V. Gnazzo is not
a lawyer or a legal scholar. Information and analysis derived from the
quoted sources are believed to be reliable and are offered in good
faith. Only a highly trained and certified and registered legal
professional should be regarded as an authority on the issues involved;
and all those seeking such an authoritative opinion should do their own
due diligence and seek out the advice of a legal professional. Lastly
Douglas V. Gnazzo believes that The United States of America is the
greatest country on Earth, but that it can yet become greater. This
article is written to help facilitate that greater becoming. God Bless
America.